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BreakEven Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single

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BreakEven Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip ight has the following operating statistics: Fuel $ 1 1,929 Flight crew salaries 9,137 Airplane depreciation 4,314 Variable cost per passengerbusiness class 60 Variable cost per passengereconomy class 50 Round-trip ticket pricebusiness class 590 Round-trip ticket priceeconomy class 270 It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip ight. If required round the answers to nearest whole number. 3. Compute the breakeven number of seats sold on a single round-trip flight for the overall product, E. Assume that the overall product is 20% business class and 80% economy class seats. Total number of seats at break-even C] seats b. How many business class and economy class seats would be sold at the breakeven point? Business class seats at break-even seats Economy class seats at break-even [:] seats a. If Canace Company, with a break-even point at $489,900 of sales, has actual sales of $690,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number. 1.$ :] 2. C] % b. If the margin of safety for Canace Company was 40%, xed costs were $1,874,400, and variable costs were 60% of sales, what was the amount of actual sales (dollars)? (Hint: Determine the break-even in sales dollars first.) is

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